/American%20Express%20Co_%20logo%20on%20card-by%20winhorse%20via%20iStock.jpg)
New York-based American Express Company (AXP) operates as an integrated payments company in the U.S., Europe, Africa, the Asia Pacific, Latin America, and internationally. With a market cap of $181.1 billion, American Express operates through U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services segments.
The payments giant has substantially outperformed the broader market over the past year. Over the past 52 weeks, AXP rallied 56.6%, outpacing the S&P 500 Index’s ($SPX) 26.1% returns. In 2024, AXP returned 34.4% compared to SPX’s 16.5% gains on a YTD basis.
Narrowing the focus, AXP has also outperformed the ETFMG Prime Mobile Payments ETF’s (IPAY) 18.9% returns over the past 52 weeks and 7.1 gains on a YTD basis.
Despite reporting robust financial results, American Express shares fell by 2.7% following its Q2 earnings release on Jul. 19. Despite the company’s adjusted EPS grew an impressive 20.8% annually to $3.49, which surpassed the estimates by 8.4%, its total revenues net of interest expense grew by 8.5% to $16.3 billion, falling short of analyst expectations.
For the current fiscal year, ending in December, analysts anticipate the company’s EPS to grow 16.4% annually to $13.05. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the past four quarters while missing the forecasts on another occasion.
Among the 25 analysts covering the AXP stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, two “Moderate Buys,” 11 “Holds,” and two “Strong Sells.”
This configuration is slightly more bullish than two months ago, with nine analysts recommending a “Strong Buy.”
On Jul. 22, Monness Crespi analyst Gus Gala maintained a “Buy” rating with a price target of $265.
Although the stock currently trades at a premium to its mean price target of $240.71, the Street-high target of $285 indicates a potential upside of 13.2%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
